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1.) FOREST Company by establishing a factory with useful activity life of 8 years and initial investment amount of 1,400,000.00 TL, all of them want

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1.) FOREST Company by establishing a factory with useful activity life of 8 years and initial investment amount of 1,400,000.00 TL, all of them want to produce shoes of natural leather. The expectations of the company regarding this investment are listed below:; In the first year of useful activity life (TO) 10,000 pairs will be produced and the amount of production will increase by 7% each year compared to the previous year with the orientation towards authentic products. * The price of shoes on the market will be 300.00 TL and the sales price will increase by 5% each year compared to the previous year. Cost of goods sold will be 70% of net sales. * Operating expenses including depreciation will be 14% of net sales. * The investment will be financed entirely by foreign sources and the financing expenses of TL 370.000.00 will be incurred every year during the useful life of the activity. * The company will be held responsible for the corporate tax rate will be 22%. * The profitability rate of the company expects from this investment is 20%. According to the data above; a.) Calculate the repayment period of the investment. b.) Calculate the net present value of the investment. C) calculate the investment's profitability index. D) calculate what the initial investment amount should be in order to decline the investment according to the Net present value method

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